New figures released by the Finance & Leasing Association (FLA) show that the number of second charge mortgage repossessions in 2017 was 105, 27% lower than in 2016. In the final quarter of 2017, the number of repossessions was 27, down by almost 31% compared with the same period in 2016.

The rate of second charge mortgage repossessions, as a percentage of average outstanding agreements, has fallen from 0.34% in 2009 to just 0.06% in 2017.

Commenting on the figures, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said “Helping customers in financial difficulty to get back on track is a priority for the second charge mortgage market. This is reflected in the low number of repossessions reported in 2017. If customers think they may experience payment difficulties, they should contact their lender at an early stage to explore alternative options. The sooner contact is made, the easier it is to find a solution.”

Table 1:  The number of actual properties taken into possession by FLA second charge mortgage providers

 

Time period

 

Number of possessions

in the quarter

 

 

% change on the same quarter in the

 previous year

 

Annual total

 

% change on the previous year

 

2008 Total

 

2009 Total

 

2010 Total

 

2011 Total

 

2012 Total

 

2013 Total

 

Q1 2014

Q2 2014

Q3 2014

Q4 2014

 

Q1 2015

Q2 2015

Q3 2015

Q4 2015

 

Q1 2016

Q2 2016

Q3 2016

Q4 2016

 

Q1 2017

Q2 2017

Q3 2017

Q4 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

128

133

107

79

 

72

67

56

33

 

34

40

31

39

 

19

36

23

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-43.4%

-27.3%

-25.7%

-35.8%

 

-43.8%

-49.6%

-47.7%

-58.2%

 

-52.8%

-40.3%

-44.6%

18.2%

 

-44.1%

-10.0%

-25.8%

-30.8%

 

 

1,612

 

1,467

 

864

 

827

 

6282

 

676

 

 

 

 

447

 

 

 

 

228

 

 

 

 

144

 

 

 

 

105

 

 

 

 

-9.0%

 

-41.1%

 

-4.3%

 

-24.1%2

 

7.6%2

 

 

 

 

-33.9%

 

 

 

 

-49.0%

 

 

 

 

-36.8%

 

 

 

 

-27.1%